Colorado Politics

Denver Post owner laying off 107 at Colorado Springs service center

Digital First Media, owner of The Denver Post, the Boulder Daily Camera and nearly 100 other newspapers nationwide, will lay off 107 employees at its Colorado Springs service center after shifting the work to an outsourcing contractor.

Denver-based DFM notified employees in August and sent a notice late last month to the Colorado Department of Labor and Employment, as required by federal law.

Layoffs will begin Dec. 28 and be completed by Feb. 15, DFM said in the notice.

Nearly all of the jobs are in finance, including the accounts payable invoice processor and supervisor, billing specialist and supervisor, cash application specialist and supervisor, circulation billing specialist and supervisor in cash and collections, and the customer representative and supervisor.

DFM is shifting the work to Genpact Ltd., a New York-based business outsourcing company that employs more than 80,000 people in 20 countries to process transactions for hundreds of Fortune 500 companies.

DFM workers who are laid off will be eligible for training and income support from the U.S. Labor Department under a federal program for workers who lose jobs as a result of imports or a shift of production or services to a foreign country. Colorado Department of Labor and Employment officials filed petitions in September for Trade Adjustment Assistance for the workers.

The federal agency found that the local workers qualify because DFM “has acquired from a foreign country service like or directly competitive with services supplied by the workers.”

Five customer service centers in Colorado Springs have either closed or laid off employees since Dec. 31, resulting in the loss of 1,000 jobs while the companies that operate those centers expand operations in low-wage countries.

The DFM center at 12320 Oracle Blvd., Suite 310, opened in 2007.

Digital First Media – a business name of MediaNews Group – is owned by Alden Global Capital, a New York-based hedge fund specializing in distressed properties.

The Post has experienced several waves of layoffs in recent years in its newsroom and other departments as Alden has cut costs largely to boost profits, and several of its editors and reporters left recently to launch the Colorado Sun, a Denver-based news website.

The company also owns newspapers and their websites in Broomfield, Burlington, Canon City, Fort Morgan, Lamar, Longmont, Loveland, Sterling and other Colorado cities as well as in Boston, San Jose and St. Paul.

(Ulf Wittrock, iStock)
Ulf Wittrock

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